Laguna Beach : Tax Accountant Gets 2 1/2 Years for Fraud

Sidney Binder, a Laguna Beach tax accountant, was sentenced on Monday to serve 2 1/2 years in federal prison for mail fraud charges stemming from various real estate and investment deals he put together.

“It is my intention that Mr. Binder never again in his life drive a Cadillac or make $100,000 a year,” said U.S. District Judge Richard A. Gadbois Jr., adding that Binder will “never have any discretionary income if I can prevent it.”

Binder, 58, was convicted by a Los Angeles federal jury on 15 mail fraud counts in November. He offered to pay $1,000 a month restitution to investors.

But, Gadbois, who placed Binder on five-years probation following his prison time, said he would work out the details of a restitution plan at a later date.

“I made mistakes, there is no question of that,” said Binder, a short, silver-haired man. “Throughout my entire life I’ve tried to help people.” Binder, who is appealing his conviction, was a partner in five defunct firms known as the Questar Cos. The partners were charged with defrauding mostly Orange County investors of about $1 million by making false statements when they sold undeveloped land in the Antelope Valley and San Bernardino County.

“Absent death or serious injury, a robber could not have done more violence to the lives of these victims than Binder did,” said Assistant U.S. Atty. Sharon McCaslin in a sentencing memo filed with the court.

“Binder was driven by something that can only be described as beyond greed,” said McCaslin. “Not content with what disposable money his victims had to invest, Binder convinced them to turn over their life savings, refinance their homes and borrow on life insurance policies. Binder was not deterred knowing he was taking away all of their financial security.”

About 15 angry investors attended Binder’s sentencing hearing. “I’m sick,” said Rosalie Gale, of Orange. “We will lose our house. We’re more broken than he is.” Aldo Asquini, of Ontario, said he was “very disappointed” in the verdict.

“The restitution should be 100%,” said Asquini, who said he lost $50,000 in cash and $87,000 in interest payments. Binder’s partner, Daniel Leffler of Costa Mesa, is scheduled to be sentenced on Jan. 30. His attorney asked for the delay to enable Leffler to cooperate with FBI agents in Ohio who are investigating another investment program.